Rather than using blunt force to completely cut off audiences that aren’t performing as well, consider that at the right price, nearly any audience can be profitable.
That means bidding and budgeting can make “okay” audiences perform as well as any other audience, such that we allocate marginal dollars to where we get the most marginal return– a core microeconomics principle.
So lower budgets on lower performing audiences to see CPL go down. Then manual bid, if still necessary to force down the CPL. This is a more elegant approach than basically excluding an entire audience.
Dennis Yu
Dennis Yu is the CEO of Local Service Spotlight, a platform that amplifies the reputations of contractors and local service businesses using the Content Factory process. He is a former search engine engineer who has spent a billion dollars on Google and Facebook ads for Nike, Quiznos, Ashley Furniture, Red Bull, State Farm, and other brands.
Dennis has achieved 25% of his goal of creating a million digital marketing jobs by partnering with universities, professional organizations, and agencies. Through Local Service Spotlight, he teaches the Dollar a Day strategy and Content Factory training to help local service businesses enhance their existing local reputation and make the phone ring.
Dennis coaches young adult agency owners serving plumbers, AC technicians, landscapers, roofers, electricians, and believes there should be a standard in measuring local marketing efforts, much like doctors and plumbers must be certified.